UK house prices rose at the fastest pace in two years in November as buyers scrambled to get ahead of stamp duty changes due in 2025, new data from Nationwide shows. .
House prices rose 1.2% in the month to November, and rose 3.7% for the year.
– Advertisement –
“The sharp fall in the budget was more of a wrinkle than a crack. The housing market has shrugged it off and returned to its highest annual growth rate since November 2022,” said Sarah Coles, head of personal finance at Hargreaves Lansdown. he said.
“Landlords are becoming more active and are lining up their sales ahead of the Budget. They may not have been hit by the capital gains tax they expected in the speech, but the Treasury will Given that it is still more likely that taxes for landlords will be increased than reduced in the coming year, it is quite possible that many of them made the decision while they knew their position. Just run away.”
“As more properties go on sale, more buyers will take action, especially in areas where a lack of choice has deterred them from buying.” New Purchase Mortgage Approvals in October The Bank of England had hinted that this may be the case, as the number of approvals rose to its highest level since August 2022, returning to solid pre-pandemic territory at 68,300. ”
Whether next year’s changes to stamp duty laws will sustain house price increases will depend largely on interest rates and associated mortgage rates. Mortgage rates have been rising steadily in recent weeks following signals from the Bank of England that interest rates may not fall as quickly as previously thought.
Interest rates and mortgage rates will continue to push prices up until 2025 when the dust settles from next year’s stamp duty withdrawal rush, but affordability is still at the limit for many first-time buyers.
